JEDDAH: UAE-based Al Habtoor Group has decided to sell all its assets and investments in Lebanon, including hotels, commercial and residential properties, land holdings and other investments, according to an official statement. The decision follows the group’s Jan. 28 announcement that it would cease operations in Lebanon, citing “prolonged instability, ongoing hostile campaigns, public attacks, and defamatory actions directed at the group and its businesses, as well as the broader legal proceedings currently underway between the Group and the Lebanese government.” In its earlier statement, the Dubai-based conglomerate said the cumulative impact of these factors had made continuing operations “unsustainable at this time.” It also cited the absence of effective state decision-making and adequate stability and protection, saying it was compelled to halt what it described as an ongoing financial drain and terminate all employees. Investment disputes and losses The group had also announced in January that it would pursue legal action against Lebanon over unresolved investment disputes and losses it estimated at $1.7 billion, which it linked to banking restrictions and state inaction. It said the losses stemmed partly from measures imposed by Lebanese authorities and Banque du Liban that prevented it from accessing and transferring funds deposited in Lebanese banks, as well as the country's wider political, economic and institutional crisis. The latest decision marks the next stage of the group’s strategic review of its investment portfolio. Its board has determined that a complete divestment represents the most appropriate course of action, consistent with its approach to investment management, capital allocation and protecting its interests, the statement said. The sale process will be structured, with each asset assessed individually and transactions pursued in line with market conditions and valuations. Portfolio Al Habtoor Group established its presence in Lebanon in the late 1990s, investing in hospitality, real estate, leisure and other sectors. Its Lebanese portfolio includes two hotels in Beirut, the Metropolitan Palace Hotel and the Al Habtoor Grand Hotel, which operate as an adjoining complex known as Al Habtoor City Beirut. The group said it had maintained its investments and properties through successive periods of economic and political uncertainty, contributing to the country’s tourism infrastructure, economic activity and employment. Shift in strategy The latest decision reflects a shift in its investment strategy, with resources to be concentrated in markets offering greater long-term stability, investment certainty and sustainable growth opportunities, the statement added. Al Habtoor Group said it would continue pursuing international investment opportunities aligned with its long-term objectives and announce further details of the divestment process in due course.